Correlation Between Lindsay and Oshkosh
Can any of the company-specific risk be diversified away by investing in both Lindsay and Oshkosh at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lindsay and Oshkosh into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindsay and Oshkosh, you can compare the effects of market volatilities on Lindsay and Oshkosh and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lindsay with a short position of Oshkosh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindsay and Oshkosh.
Diversification Opportunities for Lindsay and Oshkosh
Weak diversification
The 3 months correlation between Lindsay and Oshkosh is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Lindsay and Oshkosh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshkosh and Lindsay is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lindsay are associated (or correlated) with Oshkosh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshkosh has no effect on the direction of Lindsay i.e., Lindsay and Oshkosh go up and down completely randomly.
Pair Corralation between Lindsay and Oshkosh
Considering the 90-day investment horizon Lindsay is expected to generate 1.12 times more return on investment than Oshkosh. However, Lindsay is 1.12 times more volatile than Oshkosh. It trades about 0.29 of its potential returns per unit of risk. Oshkosh is currently generating about 0.08 per unit of risk. If you would invest 12,309 in Lindsay on October 20, 2024 and sell it today you would earn a total of 995.00 from holding Lindsay or generate 8.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindsay vs. Oshkosh
Performance |
| Timeline |
| Lindsay |
| Oshkosh |
Lindsay and Oshkosh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindsay and Oshkosh
The main advantage of trading using opposite Lindsay and Oshkosh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindsay position performs unexpectedly, Oshkosh can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oshkosh will offset losses from the drop in Oshkosh's long position.| Lindsay vs. Columbus McKinnon | Lindsay vs. Astec Industries | Lindsay vs. Shyft Group | Lindsay vs. AGCO Corporation |
| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitowoc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |